London tourism 'set to reach £77billion by 2025'

Main attraction: The London Eye (Picture: Doug Peters/PA) Doug Peters/PA

London’s tourism industry is set to sky-rocket over the next 12 years with high-spending foreign nationals pumping billions into the capital’s economy, says a report published today.

The study estimates the sector will grow from a value of £36 billion this year to £77.4 billion in 2025.

The report concludes that the rise — a 66 per cent jump once inflation is accounted for — will see tourism in the city grow faster than the manufacturing, construction and retail sectors.

Deputy Mayor for Business and Enterprise Kit Malthouse said: “These figures are great news for the capital and demonstrate that London remains one of the most exciting tourist destinations in the world. The very confident forward projections out today indicate an exciting future for this great city.”

The report, commissioned by Visit Britain, suggests that in 2025 London’s £77.4 billion tourism trade will account for 12.8 per cent of the city’s GDP.

The industry will also support about 700,000 jobs — 12 per cent of all of the capital’s employment, the document estimates. The largest-growing part is expected to be in-bound tourism, with the spend by visiting foreign nationals predicted to rise six per cent a year.

The Deloitte report also states that if Britain were to become as successful as other EU nations in attracting visitors from emerging markets such as China, it could boost the capital’s GDP by an additional £12 billion by 2025.

VisitBritain chairman Christopher Rodrigues said: “London is the cornerstone of what we offer the world and tourism is the bedrock of the British economy. It has the ability to grow at levels that will lead other industries out of the economic slowdown.”

Mr Rodriguez said better marketing is needed to promote Britain “more aggressively” overseas if the industry is to fulfil its potential.

Earlier this year he criticised the implementation of spending cuts to his agency’s budget, saying the country should be capitalising on the feel-good factor generated by the 2012 London Olympics.

He compared the cuts to taking the javelin away from Olympic gold medallist Jessica Ennis during a heptathlon.